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•H 



EN'\'lRONMENTAL REStARCH AND DEVEtOPMENT 



and disposal costs. The poicntial market for new and emerging technologies 

 in air p>olluiion control, composite materials, nonfossil fuels, biocngineering, 

 and other fields is large, and industry is racing to capture it through its en- 

 vironmental technology R&D efforts. "Environmentally friendly" has become 

 a powerful marketing tool as well, as producers aim to attract consumers 

 with products that have less harmful impacts on the environment. 



Federal Role in Industrial Technology 



Technology development was originally thought to be exclusively in the pri- 

 vate sector's domain. But beginning with technological research in defense, 

 space, and energy, a consensus has developed that government does have 

 a role in promoting technology development, primarily at the precompet- 

 itive stage or the stage at which knowledge is nonproprietary and broadly 

 applicable.'^ Technology is recognized as vital to economic development, 

 and so is intricately wrapped up in public jjolicy considerations. Tlie 1988 

 Omnibus Trade and Competitiveness Act committed the government to 

 supponing technology development that is "essential for long-term security 

 and economic prosperity." Today it is becoming clear that environmental 

 technologies fit this description. 



The federal government is involved in promoting industrial effons 

 in environmental R&D in several ways. Besides the direct federal funding 

 of R&D through contraas, the government also promotes industrial efforts 

 in environmental R&D through economic incentives. A lo percent tax credit 

 for increments to R&D, enacted in 1981, aims to encourage R&D by reducing 

 the overall cost of R&D by up to 4 percent. The National Cooperative Re- 

 search Act of 1984 allows private companies to form research alliances without 

 facing antitrust allegations. 



The government is also a major purchaser of industrial products. 

 Government procurement f>olicies and specifications can have a significant 

 impact on industrial programs. The Carnegie Commission's repon Tech- 

 nology and Economic Performance cited the need for government to provide 

 incentives for private-sector R&D through a stable regulatory environment 

 to decrease investment risk and uncenainty, and through opportunities 

 for the commercialization of technologies developed under government 

 contract.'' 



Pubuc-Private Partnership 



The idea of a more explicit public-private pannership in environmental 

 R&D is only beginning to take shape. The National Environmental Tech- 



